According to a new report from Yardi Matrix -- in perpetually expensive Manhattan - residential rents are falling due to a rapid increase in rental development in 2018. With a new cycle peak for inventory, rents there, as in much of the nation, will likely maintain a trend of moderation.
With a multifamily pipeline of more than 10,000 units underway and an additional 27,000 in the planning and permitting stages, Manhattan is likely to maintain its fast-paced inventory expansion. "Multifamily is growing and evolving in submarkets such as Hells Kitchen, East Harlem, the Garment District and the Downtown, while an entire neighborhood is springing up in Hudson Yards. Meanwhile, rents in the Lifestyle segment continue to slide," said Paul Fiorilla, Editorial Director for Yardi Matrix.
Competition from new deliveries in the boroughs, especially Queens and Brooklyn, also contribute to Manhattan's flattening rent growth, he added. "As a result, while Manhattan is a dynamic market that remains in high demand as a place to live and do business, we expect rent growth to remain weak, even as the underlying economy and demand remain strong." Yardi Matrix projects that
According to the Real Estate Board of New York's latest bi-annually Manhattan Retail Report, Manhattan's retail market correction continued this spring with per square foot ground floor retail average asking rents declining year-over-year in 9 of the 17 high-profile corridors.